Contingent Valuation: A review with Emphasis on Estimation Procedures

by Jubin Antony and Aruna Rao .

Abstract: Contingent valuation (CV) is a method to appraise the benefits a society receives from public goods. CV surveys have become a popular way of estimating monetary value on non-marketed goods. CV method first came into use in the early 1960ís (Davis, 1963). A large number of research studies have used CV to estimate the value of investment projects aimed at the welfare of society. In this article we discuss the methodological developments in CV through an extensive literature survey. We also discuss the results of our simulation studies to compare the single and double bound estimation procedures.

Key Words: Contingent Valuation, Willingness to pay, dichotomous choice, maximum likelihood estimation, double bound models

Jubin Antony,
Aruna Rao,

Editor: Ahmed H. Youssef,

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